China’s reform of its vast corn sector is spurring a rapid revival of cheaper high-fructose corn syrup (HFCS), putting it on a collision course with Asian sugar producers in a battle for the lucrative sweetener market. Output of HFCS is set to jump 7 percent this year, as cheap corn from a sell-down of the country’s giant stockpiles encourages producers to boost output or restart idled capacity, according to Zhuochuang, a commodities information service headquartered in Zibo, East China’s Shandong Province…Full Article: The Global Times July 2017

Key Points

China’s high-fructose corn syrup (HFCS) production is expected to reach 4.15 million MTs. In China, HFCS is much cheaper (33% to 50% cheaper) than natural sugar (sugarcane/sugar beets) and is generally used as a sugar substitute for liquid food products (i.e. Coca-Cola and other beverages).

In March 2017, Philippines imposed import restrictions on corn syrup imports from China due to oversupply.

ChinaAg Comments

In 2016, Chinese production of corn syrup/fructose/glucose totaled approximately 3.8 million MTs. The bulk of Chinese production was HFCS-55 (roughly – fructose 55%, glucose 41%, maltose 4%), while the remaining share of production was HFCS-42 (roughly – fructose 42%, glucose 53%, maltose 5%).

In March 2016, China’s National Development and Reform Commission (NDRC) announced it would end the country’s corn stockpiling program in 2016. During the same month, China reportedly had approximately 250 million MTs of corn in its state reserves.